The benefits of owning a home based business are opportunities that people now more than ever are taking full advantage of. We are now living in very exciting times due to the world economy never being like it once was. Granted, for some it may be challenging with loss of jobs and high unemployment but, for home based entrepreneurs it is an opportunity to solve many more problems (particularly financial) for everyone who is open while generating massive amounts of money. The following are major benefits that all should take advantage of.
1. Liberation/Freedom- This is probably the main reason why most home-based entrepreneurs enjoy their business. It is an opportunity to have full control over your own life. As a home-based business owner, YOU are the boss, thus you can shape your schedule based around your individual lifestyle and ambitions. Time freedom is truly priceless. Just as equally exciting, is the potential financial freedom that it can provide because YOU determine how much you want to earn. This is especially true if you’re in a network marketing/direct sales type of business because it gives the business owner the opportunity to earn residual income.
2. Tax Advantages- There is a number of tax advantages when using your home as a place of business. From deductions on home, whether rent or own, to gas mileage, to everything else in between, there is a wealth of deductions for the home-based businessperson. Everything that you use to operate your business is a deduction. Some examples include: phone bill for talking with clients, electricity and internet to power the computer and reach potential clients through e-mail for marketing, gas reimbursement for going to meetings with potential clients, lunch for feeding clients, and this is only the beginning. However, please consult your Certified Public Accountant for a thorough evaluation of which deductions would be considered liable.
3. Empowerment- When you own a home-based business there is a whole new level of power that is yours. Compared to being at a traditional job or a traditional “brick and mortar” business, the home-based business entrepreneur does not worry about being told when to eat lunch, when to wake up in the morning to arrive by a certain time, deadlines, employee competence and trust, office politics, large overhead costs, or incompetent bosses. Rather, this privileged entrepreneur has full control over every detail of their life including flexibility with personal life. Granted, for some who are use to being in a “worker bee” mindset all of this control could be scary. Nevertheless, on days when it’s -4 degrees outside, when a child is sick and need caring for, or when paychecks are cut let alone pay raises, having a home-based business is priceless. More importantly, personal growth and development (the key to success) is greatly enhanced as you learn more about your business, others, and yourself.
These top benefits are only the tip of the iceberg. Although for many freedom and empowerment in every way imaginable is more than enough. As stated earlier, these are very exciting times where more people are choosing to take full responsibility and control over their lives and a large percentage are choosing to do that through being a home-based business entrepreneur. Consider the limitless opportunities that this growing movement can provide and be a dream achiever. Cheers to the home-based business entrepreneurs!
Credit Counselors and Debt Consolidators are inundating the Internet, newspapers, magazines, radio, and television with ads promising to rescue you from your poor credit history and your poor FICO credit rating. This appears to be great news. Let's see if it really is good news.
If you search hard enough you can find some credit counseling agencies and debt consolidators that can actually help get people out of debt. But there are many such services run by con artists who are after your money, money you probably can't really afford to spend. And, sadly, they have no intention of helping you.
There are trustworthy companies and bad companies among the hundreds of credit counselors and debt consolidators, and, good or bad, all appeal to your emotional distress to get out of debt. Let's consider the differences.
The Best Credit Counselors.
These services will actually help you fix your credit history while improving that all important FICO credit score. They will help you realize where you went wrong with your credit decisions and then devise a plan to start correcting your bad habits.
Once your spending is under control, they will help you create a budget so you can stop making credit mistakes, stay out of debt and live a more stable financial life.
The Debt Consolidation Shell Game.
These companies operate with a slightly different agenda and my advice is: You should only consolidate your debts when you have exhausted all other avenues. It's true that debt consolidators also help you get out of debt, but they do so by working with your creditors to combine all of your obligations into one large loan with one monthly payment.
The pitch they make is deceiving. Yes, the payment on the consolidated loan will total less per month than the total of your current payments but, usually, the interest rate on the consolidated loan is high because you are high risk. This means you will end up paying back more in interest in the long run.
Again, avoid debt consolidators and, if you need outside help, go with a debt counselor instead. They will advise you and keep you from falling back into the habits that got you into trouble in the first place. Consolidators, on the other hand, will only be concerned about you making your monthly payments on the new loan for which they collect a fee.
The ' Fix My Credit ' Crooks!
These crooks are obvious. Any ' fix your credit ' offer that claims they can magically erase your debt without you lifting a finger (except pay them) is a scam. Think about their claim. Creditors would have to forget you owe them money. Why would they do that? Some of these scams are designed to force you into bankruptcy. Sure, your debts will be gone but the record stays in your credit report for up to 10 years and your FICO credit score will plummet.
How do you find a reputable credit counseling company?
The first thing to look for is they should be accredited by the Better Business Bureau or by some reputable financial services organization such as the National Institute for Financial Counseling Education. The debt counseling website should display a notice of endorsement or a logo and a link to their record with the organization endorsing them. Click through the link to check that there are no unresolved complaints against them.
An often forgotten source for information is your State Attorney General office. Many states have bureaus that track complaints against such companies. State agencies also give you the ability to sue a scam company for free. Check with them. And, of course, you can always run a scam check on line.
What can you expect to pay for services?
All credit counseling agencies charge a modest, reasonable monthly service charge of approximately $30. Some also charge a registration fee in addition to the monthly service charge but this too is usually reasonable, around $50. If you are in dire straits financially, many offer reduced fees to get you started. This is negotiable so ask for it if you really need it.
Expect to fill out an application if you decide to go with a credit counseling agency. While you will be required to disclose your financial history, the agency is required to disclose the fees you will be charged, what services you can expect will be provided to you, and in what time frame all of this will be provided. Be sure to read the fine print!
What should you do? You can become your own debt counselor and discover, for free, how you can fix your credit yourself. The federal government has tons of free information online and don't forget to ask your local banker for free advice. They have an interest in keeping you as a customer. Also check local non-profit organizations for free counseling.
State privacy regulations safeguarding personal information have been established by over forty states. One of the most recent states to establish privacy regulations and security breach notification requirements is Massachusetts. The Massachusetts Privacy Regulations are the most comprehensive state regulations, and they are likely to become the model for other states. The Massachusetts Privacy Regulations require businesses and other holders of personal information to ensure that consumers’ information is kept safe. The Regulations may affect how your business protects certain confidential personal information, even if you are not located in Massachusetts.
The impetus for the Massachusetts Privacy Regulations included over 450 reported cases of stolen or lost personal information that affected nearly 700,000 Massachusetts residents during 2007-08.
Businesses and other organizations should achieve compliance with at least the minimum requirements of the Massachusetts Privacy Regulations. Doing so will likely minimize future compliance efforts as states and the federal government strengthen their requirements for protecting personal information.
Massachusetts Privacy Regulation 201 CMR 17:00
The Massachusetts Privacy Regulations affect companies in all 50 states. The Regulations apply to all businesses and legal entities that collect or store confidential personal data regarding consumers and employees residing in Massachusetts. and to consumers with no physical presence in Massachusetts.
The Massachusetts Privacy Regulations preserve the privacy of consumers and employees by increasing the level of security on personal information held by businesses and other types of organizations. The Regulations mandate that personal information, including a combination of a name along with a Social Security number, bank account number, or credit card number be encrypted when stored on portable devices, or transmitted wirelessly or on public networks. Encryption of personal information on portable devices carrying identity data including laptops, PDAs and flash drives must also be implemented by Jan. 1, 2010, ensuring increased protection of personal information.
The majority of personal information security breaches involve the theft of portable devices. Data encryption significantly neutralizes consumer risk if information is lost or stolen. The regulations require businesses to encrypt documents containing personal information sent over the Internet or saved on laptops or flash drives, encrypt wirelessly transmitted data, and utilize up-to-date firewall protection that creates an electronic gatekeeper between the data and the outside world and only permits authorized users to access or transmit data.
The Massachusetts Privacy Regulations require businesses and other organizations to prepare and maintain an up to date Written Information Security Program (WISP) to achieve compliance with the Regulation and to prepare for compliance audits. Conducting a State Privacy Regulation Compliance Survey is a highly effective way to gather comprehensive information required for creating a WISP and achieving compliance with privacy regulations. Personal Information Privacy Compliance Surveys collect information from your company’s employees about their handling of employees’ and customers’ personal information.
State Privacy Regulation Compliance Surveys
State Privacy Regulation Surveys assess how companies and other types of organizations currently handle employee and consumer personal information as part of their effort to comply with state privacy regulations.
The Massachusetts Privacy Regulations Survey gathers comprehensive information that identifies what needs to be done to comply with the Massachusetts Privacy Regulations. The survey collects a wide range of information from employees located in Massachusetts and across the U.S. Survey reports provide data about the handling of private customer and employee information for the organization overall and for each organizational unit.
Complying with the Massachusetts Privacy Regulations and other state personal information privacy regulations requires knowing which employees in your organization receive, handle, store (including on-site and 3rd party off-site storage), transmit and perform other processes with personal information in electronic and paper formats. Companies are also required to know the sources and where, how and how frequently personal information is received, handled, stored and transmitted. The Massachusetts Privacy Regulations also require having control over document/data retention/destruction schedules where personal information is included. You also need to know which automated and manual systems are used for storing and transmitting personal information.
State Privacy Regulation Surveys enable companies and other types of organizations to comply with federal and state privacy laws. The surveys help avoid costs and negative publicity associated with breaches in personal information privacy due to personal information theft and carelessness on the part of employees while handling personal information of customers and employees.
Massachusetts Privacy Regulations Compliance Deadlines
• The general compliance deadline for 201 CMR 17.00 was extended from January 1, 2009 to May 1, 2009.
• The deadline for ensuring that third-party service providers are capable of protecting personal information and contractually binding them to do so will was extended from January 1, 2009 to May 1, 2009, and the deadline for requiring written certification from third-party providers will be further extended to January 1, 2010.
• The deadline for ensuring encryption of laptops was extended from January 1, 2009 to May 1, 2009, and the deadline for ensuring encryption of other portable devices was extended to January 1, 2010.
201 CMR 17.00 – Answers to Frequently Asked Questions (FAQs)
1. Your information security program must be in writing. Everyone who stores or maintains personal information must have a written plan detailing the measures adopted to safeguard such information.
2. You are responsible for independent contractors working for you. You have the duty to take all reasonable steps (1) to verify that any third-party service provider with access to personal information has the capacity to protect personal information as provided for in 201 CMR 17.00; and (2) to ensure that third party service providers are applying to personal information protective security measures at least as stringent as those required to be applied to personal information under 201 CMR 17.00.
3. You do not have to inventory your paper and electronic records. You do need to identify which of your records contain personal information so that you can handle and protect that information in a manner that complies with the regulations.
4. You need to determine if your current computer system complies with the encryption requirements. You do need to make sure that the encryption process you are using is transforming the data so that it cannot be understood without the use of a confidential key or process.
5. Both the statute and the regulations specify that compliance is to be judged taking into account the size and scope of your business, the resources that you have available to you, the amount of data you store, and the need for confidentiality.
6. You will need to do enough training to ensure that employees with access to personal information know what their obligations are regarding the protection of that information as defined by the regulations.
7. The Massachusetts regulations require limiting access to personal information only to those individuals who are reasonably required to have access in order to accomplish a legitimate business purpose, or to comply with other state of federal regulations. You should identify your business needs, determine what tasks are reasonably necessary to satisfy those business needs, and identify who must have access to carry out those tasks.
8. The correct approach for limiting the amount of personal information collected involves determining your legitimate business needs, identifying the kind of personal information reasonably needed to perform the tasks required to satisfy those business needs. Collection of personal information needed for compliance with state or federal laws/regulations is permitted.
9. Your need for new computer software or equipment will depend on whether your current equipment meets the minimum requirements for running the software that will secure any electronic records containing personal information. The versions of the security and operating system that you currently have must be supported to receive security updates, and your computer equipment must meet the minimum requirements for running the needed software. If not, you will need new software, new hardware, or both.
10. The level of monitoring necessary to ensure your information security program is providing protection from unauthorized access to, or use of personal information, and effectively limiting risks will depend largely on the nature of your business, your business practices, and the amount of personal information you are maintaining or storing. It will also depend on the form in which the information is kept and stored. Information stored as a paper record will require different monitoring techniques from those applicable to electronically stored records. The monitoring that you implement must be reasonably likely to reveal unauthorized access or use.
11. Businesses that store or maintain electronic records, and do not have in-house IT resources or regular access to providers of IT services, will need to hire someone to set up user identification protocols, secure access control measures, and firewalls, even if only on a one-time or part-time basis.
Massachusetts Privacy Regulation (201 CMR 17.00) Compliance Checklist
The State of Massachusetts Office of Consumer Affairs and Business Regulation compiled a checklist to help businesses in their effort to comply with 201 CMR 17.00.
Businesses should have a Written Information Security Program (WISP) to achieve compliance with the Regulations and to prepare for compliance audits. The following checklist is adapted from the Massachusetts Office of Consumer Affairs and Business Regulation’s checklist. Each item identifies an aspect of the regulations that requires attention for a plan to be compliant:
Comprehensive Written Information Security Program (WISP) Checklist:
1. Your business/other type of organization should have a comprehensive, written information security program (“WISP”) applicable to all records containing personal information about a resident of the Commonwealth of Massachusetts.
2. Include administrative, technical, and physical safeguards for personal information protection in your WISP.
3. Designate one or more employees to maintain and supervise WISP implementation and performance.
4. Identify paper, electronic and other records, computing systems, and storage media, including laptops and portable devices that contain personal information.
5. An alternative is treat all of your records as if they all contain personal information.
6. Identify and evaluate reasonably foreseeable internal and external risks to paper and electronic records containing personal information.
7. Evaluate the effectiveness of current safeguards.
8. The WISP should include ongoing employee training and procedures for monitoring employee compliance.
9. Include disciplinary measures for violators of the WISP.
10. Include policies and procedures for when and how records containing personal information should be kept, accessed or transported off your business premises in the WISP.
11. Include immediately blocking terminated employees’ physical and electronic access to personal information records (including deactivating their passwords and user names) in the WISP.
12. Take all reasonable steps to verify that third-party service providers with access to personal information have the capacity to protect personal information as provided for in 201 CMR 17.00.
13. Take all reasonable steps to ensure that your third party service providers with access to personal information are applying personal information protective security measures at least as stringent as those required to be applied to personal information under 201 CMR 17.00.
14. The amount of personal information that you have and continue to collect should be limited to the amount reasonably necessary to accomplish your legitimate business purposes, or to comply with state or federal regulations.
15. The length of time that you are storing records containing personal information should be limited to the time reasonably necessary to accomplish your legitimate business purpose or to comply with state or federal regulations.
16. Access to personal information records should be limited to employees/contractors who have a need to know in connection with your legitimate business purpose, or in order to comply with state or Federal regulations. Customers should only have access to their own personal information.
17. Specify the manner in which physical access to personal information records is to be restricted in your WISP.
18. Store records and data containing personal information in locked facilities, storage areas or containers.
19. Implement a process for regularly monitoring the WISP to ensure that it is operating in a manner reasonably calculated to prevent unauthorized access to or unauthorized use of personal information; and for upgrading the WISP as necessary.
20. Review security measures at least annually, or whenever there is a material change in business practices that may affect the security or integrity of personal information records. Conducting a Personal Information State Privacy Regulation Survey is an effective way to gather information for achieving initial and ongoing compliance with the Massachusetts and other state personal information privacy regulations.
21. Implement a process for documenting any actions taken in connection with any breach of security. The procedure should require post-incident review of events and actions taken to improve security.
Industries which hire high volumes of employees are at high risk of harm without the implementation of a solid safe hiring program.
On one hand, large businesses know that if they don’t take measures to conduct pre-employment screening and exercise due diligence in hiring, it is a statistical certainly they are sitting ducks for expensive litigation, workplace violence, false claims, theft, embezzlement and economic loss.
Just one bad hire can cost a firm literally millions. Studies show that screening reveals criminal records for up to 10% of job applicants, and at least one-third of all resumes contain materials falsehoods. For food establishments, manufactures, hotels and other business that have a national brand, one negative employee caused event can result in damaging national publicity and significant harm to the brand.
The catch, however, is that large hourly employers face enormous financial and logistical challenges in implementing safe hiring programs. Screening large numbers can be expensive and time consuming. Some industries hire at multiple locations, and can experience large turnover.
The problem is compounded when firms hire seasonal, temporary or contract workers as well. Such industries can include hospitality, manufacturing, service, retail, food and restaurants, and tourism. The challenge is how industries with a large numbers of hourly, seasonal, temporary or contract workers or significant turnover, can protect themselves in a cost-effective and efficient manner.
The answer is probably less complicated then it first appears-due diligence and safe hiring does not require a large budget when employers implement a safe hiring system, as opposed to buying background checks.
Many firms make the mistake of believing that in order to show due diligence, they need to spend a great deal of money to perform background checks and criminal record research. These firms view pre-employment screening as a process that starts after a hiring manager has selected an applicant, and the name is submitted to security or human resources for a background report. Depending upon the employer, it is either outsourced to a background company or investigated internally through corporate security.
An effective background-screening program, however, does not need to cost a great deal of money because it is much more then just checking background and criminal records after a candidate has been selected. In fact, in an effective safe hiring system, the primary tools are the application, interview and reference checking process, also known as the AIR process. These processes are performed in-house as part of the routine hiring program, and do not cost employers a dime, as long as it is followed. A brief review of the AIR process is contained in the attached Safe Hiring Checklist.
AIR PROCESS
1. Use an application form, not just resumes.
Use of an employment application form is considered a best practice. Resumes are not always complete or clear. Applications ensure both uniformity and that all needed information is obtained, prevents employers from having impermissible information, and provides employers with a place for applicants to sign certain necessary statements.
2. Make sure the application form contains all necessary language.
a. Use the broadest possible language for felony and misdemeanor convictions and pending cases. One of the biggest mistakes employers make is to only ask about felonies on an application form since misdemeanors can be very serious. Employers should inquire about misdemeanors to the extent allowed in their state.
b. Statement that criminal records do not automatically disqualify an applicant. This is important for EEOC compliance. It is critical for employers to understand that the background screening is conducted to determine whether a person is fit for a particular job. Society has a vested interest in giving ex-offenders a chance. However, an employer is under a due diligence obligation to make efforts to determine if a person is reasonable fit for a particular position. For example, a person just out of custody for a violent crime would not be a good candidate for a job that require them to go into people’s home, but may perform very well on a supervised work crew. If a criminal record is found, an employer must determine if there is a business reason not to hire the person, based upon the nature and gravity of the offense, the nature of the job and when the crime occurred. There are also limitations to the use of arrests not resulting in a conviction, and a number of states also have rules about criminal records.
c. Statements that lack of truthfulness or material omissions are grounds to terminate the hiring process or employment no matter when they are discovered. This is particularly important if a criminal record is found. Although a criminal record may not be used automatically to disqualify an applicant, the fact an applicant has lied about a criminal matter can be the basis for an adverse decision.
3. Require a release for a background check in the application process.
Have each job applicant sign a consent form for a background check, including a check for criminal records, past employment and education. Announcing that your firm checks backgrounds may discourage applicants with something to hide, and encourage applicants to be truthful and honest about mistakes they have made in the past. If a firm outsources to a third party vendor, then under the federal Fair Credit Reporting Act (FCRA), there must be a disclosure on a separate standalone document.
4. Review the application carefully.
In most instances, when there is an employee problem or lawsuit, a careful review of the application would have alerted the employer in advance that they were hiring a lawsuit waiting to happen, Look for the following red flags:
Applicant does not sign application.
Applicant does not sign consent or background screening.
Applicant leaves criminal questions blank (the honest criminal syndrome-dopes not want to lie about a criminal past).
Applicant self-reports a criminal violation (Applicants can self report matters incorrectly.)
Applicant fails to explain why he or she left past jobs,
Applicant fails to explain gaps in employment history.
Applicant gives an explanation for an employment gap or the reason leaving previous job that does not make sense.
Excessive cross-outs and changes (as though making it up as they go along)
Applicant fails to give complete information (i.e. insufficient information to identify a past employer, leaves out salary, etc).
Applicant failed to indicate or cannot recall the name of a former supervisor.
5. In reviewing applications, look for unexplained employment gaps.
It is critical to verify past employment to determine where a person has been for the last 5-10 years, even if you only get dates and job titles. Look for unexplained gaps in employment. Generally, if you can verify that a person was gainfully employed for the last five to ten years, or their whereabouts can be verified it is less likely the person spent time in custody for a serious offense, although this does not eliminate the possibility of lesser offenses.
6. In reviewing applications, examine reasons for leaving each job.
7. Always ask these five questions (during housekeeping stage of interview).
Since they have signed consent and believe you are doing checks, applicants have a powerful incentive to be truthful. These questions are the equivalent of a New Age Lie detector test. Good applicants will shrug it off and applicants with something to hide may reveal vital information.
a. We do background checks on everyone we make an offer to. Do you any concerns about that you would like to discuss? (Good applicants will shrug off)
b. We also check for criminal convictions for all finalists. Any concerns about that? (Make sure the wording of the question reflects what an employer may legally ask in that state)
c. We contact all past employers. What do think they will say?
d. Will past employer tell us that e.g. your were tardy, did not perform well etc.
e. ALSO, use interview to ask questions about any unexplained employment gap
8. Check references and look for Unexplained Employment Gaps:
Verifying past employment is one of the single most important tools for an employer. It can be as important as doing criminal checks. Past job performance can also be an important predictor of future success. Some employers make a costly mistake by not checking past employment because they believe past employers may not give detailed information. However, even verification of dates of employment and job titles are critical because an employer must be concerned about unexplained gaps in the employment history.
In addition, documenting the fact that an effort was made will demonstrate due diligence. Although there can be many reasons for a gap in employment, if an applicant cannot account for the past seven to ten years, that can be a red flag.
It is also critical to know where a person has been because of the way criminal records are maintained in the United States. Contrary to popular belief, there is not a national criminal database available to most private employers. Searches must be conducted at each relevant courthouse, and there are over 10,000 courthouses in America. However, if an employer knows where an applicant has been as a result of past employment checks, it increases the accuracy of a criminal search, and decreases the possibility that an applicant has served time for a serious offense.
After the AIR process, a firm is well advised to perform a criminal check. The good news is that with an effective AIR process, the possibility of locating a serious criminal record is greatly reduced. A firm can dramatically lower their cost by concentrating on the most recent counties where an applicant resides or spent a long period of time. Some experts contend that statistically, a person is more likely to commit a criminal offense in their county of residence. As a result, a check of the county of current residence gives an employer the most return for the expenditure.
An employer may wish to do a more in-depth search depending upon the type of position. An employer may want to review those positions with a greater risk for increased scrutiny, such as:
a. Supervisors
b. Workers handling cash or Personal Identifyable information (PII).
c. Remote or unsupervised workers
d. Workers that go into people’s homes
e. Workers with Access to assets
f. Vendors
g. Temporary workers
h. Contractors
Employers who hire vendors, temporary employees or contractors can insist that the provider of these services do screening. Many firms may have janitorial crews in the faculties at night, or vendors supplying vital parts or services. Employers are within their rights to insist that third party provider certify that they have performed checks as well.
Implementing a Program throughout the company
The biggest challenge for an organization is to promote safe hiring and due diligence across an organization. The goal is to ensure that hiring managers across different divisions and sometimes across different physical locations follow procedures and pay attention to safe hiring.
The answer is to set up a S.A.F.E. Hiring System. It stands for:
S-Set-up a program, policies and procedures to be used throughout the organization, including the AIR process
A-Acclimate/train all persons with safe hiring responsibilities, especially hiring managers.
F- Facilitate/Implement the program.
E-Evaluate and audit the program by making sure that everyone responsible understands that their compensation and advancement is judged in part by the attention they pay to the hiring process. Organizations typically accomplish those things that are measured, audited and rewarded. The attached chart will help supervisors implement the program and for management to audit hiring practices.
By following the AIR process as part of an overall S.A.F.E. Hiring System, employers can demonstrate due diligence in the hiring process and protect themselves from bad hires in a cost-effective manner
About The Author
Lester S. Rosen is an attorney at law and President of Employment Screening Resources , a national background checking company located in California offering employment screening services such as employee background screening, job verification, and credential verification.
He is the author of, “The Safe Hiring Manual--Complete Guide to Keeping Criminals, Imposters and Terrorists Out of Your Workplace.” (512 pages-Facts on Demand Press), the first comprehensive book on employment screening.
He is also a consultant, writer and frequent presenter nationwide on pre-employment screening and safe hiring issues. He has qualified and testified in the California, Florida and Arkansas Superior Courts as an expert witness on issues surrounding safe hiring and due diligence. His speaking appearances have included numerous national and statewide conferences.
He is a former deputy District Attorney and criminal defense attorney and has taught criminal law and procedure at the University of California Hastings College of the Law. His jury trials have included murder, death penalty and federal cases. He graduated UCLA with Phi Beta Kappa honors, and received a J.D. degree from the University of California at Davis, serving on the Law Review. He holds the highest attorney rating of A.V. in the national Martindale-Hubbell listing of American Attorneys. Mr. Rosen was the chairperson of the steering committee that founded the National Association of Professional Background Screeners (NAPBS) a professional trade organization for the screening industry, which now has over 500 members. He was also elected to the first board of directors and served as the first co-chairman in 2004.
It is a familiar fact that we are encountering a tremendous boost in foreclosures in the real estate market. These foreclosures are also feeding the abandoned property market, which is yet an additional way to make money with distressed properties. For a number of years homebuyers have been buying houses and financing them using credit products such as adjustable rate mortgages (ARMs), interest only loans and graduated payment mortgages.
Homebuyers with low or no down payments and deficient credit scores were able to purchase a dwelling since lenders had relaxed their underwriting principles, which was a lofty contributor to the mortgage disarray we found ourselves in. When low interest rates started to adjust upward and the new the bankruptcy rules went into effect, it became a recipe for catastrophe.
If you are, or aspire to become a real estate investor, this is an opportunity to reap lots of profit, and there are many ways to do it!
Several Ways to generate Cash With Foreclosures...
1. Ask the title-holder of the residence if he/she would like to sell it. You might be very surprised at the response you might get. Many home owners are in a spot to stroll away from their house-headache. You might be able to make a splendid deal if you ask. Without having to progress through the vex of getting the lenders involved, you might be able to invest in the property without delay with the title-holder. If the title-holder wants to get rid of the dwelling, then what?s stopping you from investing in it?
2. Try to persuade the lender to grant you a loan modification.
There are lots of houses are being repossessed by the lenders these days, and approaching 80% of them move back to the lenders following the auctions since the homes don't contain much equity. Because of the boost in the quantity of repossessions, the lenders would be more than willing to allow the houses sold as soon as doable.
So if the owner of the dwelling in foreclosure wants to get rid of it, the lenders will ordinarily be hesitant to resume the foreclosure process. Many times they will offer a loan modification at the same time as a way of supporting the deal. A mortgage modification is made when the lender sees that the homeowner has sufficient wages and can shell out next month?s mortgage. The lender and the title-holder will at that time work the finances out to render it doable for the title-holder to get rid of the dwelling.
3. The famous short saleYou might have come across owners who would like to get rid of their dwelling to you, but there is not enough or no equity in the dwelling. Even though there might not exist any equity, you can still produce cash by doing a short sale. The lender will commonly decide to generate a discount on the balance of the mortgage so that the title-holder can proceed to get rid of the dwelling previous to the foreclosure public sale.
This is a very lucrative practice that can yield lofty profits. It helps to be inflicted with a spirit of teamwork, since you, the title-holder and the lender will toil collectively for mutual benefit. Your economic remuneration can be awe-inspiring by using a short sale!
4. Make contact with the lender and ask if they would sell the mortgage to you.
Now and again you'll discover foreclosed owners who, for whatever motive, maybe completely irrational and difficult. They are loosing their dwelling in foreclosure, but they don't choose to sell. As they refuse to cooperate with you to effect a mortgage modification or a short sale, the best thing to do would be to negotiate with the lender directly.
Make contact with the lender and ask if they would consider selling you the mortgage on the foreclosed dwelling. You might discover that the lender will be thrilled to push you the mortgage - maybe even at a cut rate! Concerning most cases, the lender will say yes to your offer so that they won?t have to take back the dwelling.
5. Get to the public sale and offer on it.
There are ordinarily a number of pretty lovely bargains that you can discover at the foreclosure auctions. Take a quantity of time and find out about the foreclosure public sale bidding process. It can be very worth your time. As you go to see a nice residence to invest in, offer on it. Take heed not to submit on houses that contain no equity, and complete your research so that you don't over bid.
There might exist a disadvantage concerning bidding on a residence at the public sale. You will not be able to inspect the residence as you would like to. You will merely be able to set eyes on the outside. You won?t be able to assess the dwelling in this set of circumstances. Spend the time and understand this process so that you won't create costly mistakes.
6. Make contact with the lender past the public sale and produce an offer.
We don't like to offer on houses at the foreclosure public sale that bear no equity, but we're not going to ignore them entirely either. If you keep an eye out for the investments that get back to the lender as there were no bids, you might be able to obtain them at that time. Since by law, lenders have to place aside 4 to 8 times the amount of the mortgage as they take back a foreclosed property, they might immediately roll out the red carpet in support of you and your offer.
7. Make contacts with other foreclosure investors.
Nearby are other real estate investors that wholesale investment properties currently than I have ever seen. I believe it's because of the wealth of possible deals that are in our marketplace right at the present. There's ordinarily not a snag when two investors decide to toil collectively on a wholesale transaction.
8. Liquidation cases can manufacture cash.
Most of us know that an owner of a property in foreclosure can bring to a standstill the deal by filing bankruptcy. While bankruptcy might stop the foreclosure deal, that property can be brought right back to the foreclosure process, after the bankruptcy is lifted. Be certain to follow up on liquidation cases since the owners might just approach to you seeking help once the foreclosure starts again.
9. Undercover profits. The "hidden market" within foreclosures.
The ninth way to profit from foreclosures is in the field of the hidden foreclosure marketplace. The hidden foreclosure marketplace consists of investments that might be headed to the foreclosure chopping block, but the foreclosure notices have not yet been published. This is a splendid opportunity since there are no for sale signs in the yard, and no ads running in the newspapers. No one knows about theses properties yet, which dramatically cuts down the competition.
There are lots of opportunities to produce lots of cash in the hidden foreclosure marketplace. In order to take advantage of this very lucrative foreclosure market, you have got to maintain a sensible procedure and you have got to have discipline. The discipline has to come from you, but I can provide the system. Click below to discover how to skyrocket to great big profits.
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